NU Online News Service, Jan. 25, 3:17 p.m.EST

Florida moved closer to putting an end to its personalinjury protection automobile insurance system, which the insuranceindustry says is plagued by abuse and fraud.

The Florida House Civil Justice Subcommittee passed HB 119 thisafternoon. The bill replaces the mandatory PIP, no-fault insurancecoverage with "emergency care coverage."

The American Insurance Association, a supporter of PIP repeal,released a statement to commend the subcommittee. For years theindustry has alleged fraud by the state's healthcare clinics, along withoutrageous attorneys' fees and organized staged-accident rings totake advantage of holes in the system.

The Florida Insurance Council, Property Casualty InsurersAssociation of America (PCI), Reinsurance Association of America,and the Bermuda Association of Insurers & Reinsurers are alsobacking efforts by to reform the state's auto insurance system.

"Florida is the No. 1 state in the nation for staged accidents,which has resulted in an unnecessary, nearly $1 billion fraud taxon consumers over the last 3 years," PCI says in a statement. "Withfour out of the 10 U.S. cities with the highest rate ofquestionable auto claims being right here in Florida – Tampa,Miami, Orlando and Hialeah – we must transform Florida's no faultsystem now, so Florida's most honest consumers and businesses donot continue to get stuck with the tab."

The industry would appear to have the backing of the state'sleaders. Also today, Gov. Rick Scott, Chief Financial Officer JeffAtwater, Insurance Commissioner Kevin McCarty and Consumer AdvocateRobin Westcott gathered in front of the state capitol inTallahassee to promote reform.

In Scott's state of the state address earlier this month he laidout the case for reforms to cut down on fraud.

Scott and Atwater have outlined four steps to reform the no-fault law, first enacted in theearly 1970s, which requires drivers to have PIP that provides$10,000 in coverage per person for medical bills, regardless offault in an accident.

HB 119, among many things, would change accident reports aretaken, provide coverage limits, establish a schedule of maximumcharges, create a list of diagnostic tests deemed not to bemedically necessary, and control attorneys' fees.

The bill now goes to the Economic Affairs Committee, AIAreports.